Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Hi Lindon - thanks I think I see what you mean now. Guess we can agree it's a good thing CAR is rid of this stuff! I wonder what Unipixel saw given their tenuous position in the first place ... maybe a desparate last attempt? In any case, almost seems like the perfect situation now for CAR given the mess they got into w/Xsense. Write downs are over, they're rid of the responsibility and overhead, they got a few million quid AND might get some royalties (or might not).
Here's the article in full - sure, no guarantee they pull it off, but if they do it should be all good for CAR, IMO: y Tiernan Ray Shares of touch-sensor technology maker Uni-Pixel (UNXL) are down $2.06, or 35%, at $3.77, adding to last night’s losses, after the company said it terminated a joint venture with Eastman Kodak (KODK) that had been the highlight of its fledgling production efforts. The company did, however, reiterate an outlook for $10 million in revenue this year, and gross profit margin of 20% or better. There’s a noteworthy dearth of commentary from the Street thus far, but one voice did pop up, that of Robert Stone with Cowen & Co. Stone, reiterating a Market Perform rating, writing that Uni-Pixel is choosing to go the shorter route to revenue: We believe XSense is already shipping product to at least one customer with several (5-10) in the pipeline, including one that was receiving sample quantities last year. Kodak apparently intends to pursue the InTouch process on its own, is buying the Rochester assets (value TBD), and will pay a 2.5% royalty to UNXL on future revenue. However, given limited resources, UNXL has decided to focus on XSense, given a shorter path to revenue generation, and meaningful opportunities to cut costs by providing in-house catalytic films and introducing superior material science. The new strategy, however, is not without risk: We believe that market conditions make sharing gross margins with a partner much less attractive than when UNXL entered the Kodak relationship (and ATML partnered with CIT). XSense looks like a better bet to us, given shorter time to revenue. However, we cut our target price based on risks inherent in taking over the XSense operation, rebuilding the customer pipeline, successfully combining catalyst chemistry with the existing XSense recipe, and yet to-be-specified write-down/restructuring charges.
Hi Lindon - I sort of see what you mean, but not entirely.A recent Baron's article indicates there may be a re-order of an exiting customer (presumably HP) and 5-10 others close to shipping. Additionally it's all good news to CAR from here as they have their up front payment (roughly £3M), no more expenses, and the possibility for royalties up to another £ 20M. What's not to like? Here's the Barrons link: http://blogs.barrons.com/techtraderdaily/2015/04/28/uni-pixel-plunges-35-go-it-alone-move-not-without-risk-says-cowen/?mod=yahoobarrons&ru=yahoo ......... & the money details from CAR's April 17, 2015: "An initial cash prepayment of US$4.67 million has been received by CIT at completion and this is non-refundable. " & "The maximum amount of royalties payable under both the initial and renewal agreements is capped at US$30 million (equivalent to approximately £20.2 million at completion)."
Interesting - maybe they are getting behind Xsense 100% now? --------------article------------http://blogs.barrons.com/techtraderdaily/2015/04/27/unipixel-plunges-16-withdraws-from-kodak-joint-venture/?mod=yahoobarrons&ru=yahoo
Hi Lindon - thanks for the clarity on this deal. So is the few million an up front royalty, and is it guaranteed? That's how the PR read, but I take your point about the actual purchase price (a shocking figure!).
Doesn't look like the market thinks Xsense was such a great deal for Unipixel - nor deos it say much about the current Xsense assets that there weren't more compelling buyers. In any case, we can hope that CAR is no longer collateral damage in this story. They have the initial £4.5M and hopefully today's share price reflects no expectations in royalties.
Thanks for the posts. Doesn't seem like many are bothering much anymore - Xsense turned out to be a complete mirage and this is back to being a technical plastics company. I agree with your take - sounds like some money to CAR now (and more in the future if Xsense goes anywhere w/Unipixel) and slightly unrestrictive exclusivities, limitations and timeframes. I think CAR did alright out of this particular disaster and thankfully they have other growing and mature lines of business that are working.
http://www.insidermedia.com/insider/yorkshire/136722-carclo-agrees-new-funding-deal/ .......................YORKSHIRE NEWS / 31 MAR 2015 CARCLO AGREES NEW FUNDING DEAL Carclo has unveiled a new £30m multi-currency revolving facility and £10m overdraft with HSBC. The Ossett plastic components manufacturer said the five-year facility was on broadly comparable terms to its previous banking facilities, which were with HSBC and Lloyds Bank. The agreement includes similar covenant terms and slightly more beneficial pricing. The group has also agreed a £10m overdraft facility with HSBC. Carclo is a technology-led plastics business with two-thirds of its revenues coming from Carclo Technical Plastics and a third from Precision Products.
As if on cue ... Ruffer ditched the rest yesterday, so down from nearly 9M shares to under 300K shares. They clearly don't think much of CAR or the future, but then again, look at Warren Buffett's sale of over 50% of his Tesco holdings within inches of the bottom and a month before 50% gains in the shares. He might've waited at least another month or two.
Rivaldo - thanks for the balanced post. Lindon has been quite correct about what's going on here (especially with Xsense) but it's good to see another take on the latest circular from CAR. I tend to side with your take a bit more on this one. This feels like a combination of some financial restructuring connected to the write-down along with new broker appointment and overall due diligence as CAR moves into the future, now without Xsense. I don't see it as a huge negative unless CAR are hiding something. CAAR has a history of misleading statements and making positive sounding releases about their situation mid way through their reporting periods, only to come back months later with the real story which usually turns out to be awful. That could certainly happen again here with the real story emerging on their next reporting period. Looks like the large volume trading over the last few days is connected to Ruffer reducing their stake from 13% to 7% btw .... large institutional holders are certainly lightening, not increasing their positions, so CAR is not out of trouble yet. The results of the financial restructure (calling it that because that is what it is) and the strategic review will obviously determine where things go next and with CAR, there's always a gamble that when they do release this info, it's not good. But there's no reason it can't be good news, either.
Lindon, first off thank you for posting that link ... couldn't find it anywhere ... Is it 'good news' probably not. Is it necessary, probably! Sounds like prudent accounting though it is hard what the real pressure factor here is ... either CIT impairment or lowering corporate bond yields on the pension hedge.
Seeing another 8M share volume today --- last one was Feb 5 ..... Bizarre, looks like someone is moving huge blocks around but SP not moving much .... both times at this volume, SP has been around £ 1.16/£ 1.19 ...... Anyone seen the circular referenced in today's announcement? They say it's on CAR's website, but can't find anything there ...
Lindon - assuming an amicable end to the ATML / CAR contracts for Xsense, and now that both companies have written off and ended future investment for it, is there any upside in the future whereby either/both companies could make something back selling either the IP or the factory equiptment or anything else? Gains from this would of course be offset by the write-down losses, so it might be nice if there was a way CAR could do this.
Impairment of XSense manufacturing assets. Impairment of XSense manufacturing assets reflects a $26.6 million charge for the write-down of assets used in the manufacture of XSense touch sensors. The company has determined to discontinue its investment in the XSense business and to exit the business. https://finance.yahoo.com/news/atmel-reports-fourth-quarter-full-211500745.html
Hi Lindon - though presumably if ATML suddenly needed that preferential access to CAR's facilities that would also have an upside for CAR in terms of getting added revenues? CAR's printed electronics division could still carry on and if there was suddenly too much demand, then that would also presumably be a good problem to have?
http://www.prnewswire.com/news-releases/atmel-launches-worlds-lowest-power-capacitive-touch-solution-300010987.html ---------------any benefit to Xsense?